Answer to Question #196621 in Other for Mathu

Question

You are handling a set of assets and delivering customized portfolios. You are given the following estimates. The distribution of the market portfolio’s returns RM = (μ1 + σ4) with probability 50% and RM = (μ1 - σ1) with probability 50%. The distribution of the minimum variance portfolio’s returns RMVP = (μ2 + σ2) with probability 50% and RMVP = (μ2 - σ2) with probability 50% with μ1 =0.2, μ2 =0.15, σ1 =0.2 and σ2 =0.15. The expected mean μM of the market portfolio’s returns equals ____ , and standard deviation σM equals _____ . The expected mean and standard deviation of the minimum variance portfolio’s returns equal μMVP = _____ and σMVP =_____.

Answer 1

Dear Mathu, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order